![]() ![]() If you don’t have flood insurance, you may qualify for the lower-cost Preferred Risk Policy, which automatically includes contents coverage.Interactive maps can be found at the links below.Ĭurrent (2015) Flood Maps Opens a New Window. If you have a flood insurance policy, talk with your insurance agent to see if you are fully insured to receive replacement cost for your home and that you have contents coverage. More than 40% of NFIP flood claims in Texas are from policyholders in Zone X. When the new maps go into effect, your property may be closer to a high-risk area than before. Most homeowner policies do NOT cover damage due to flooding. However, this is a good time to review your flood insurance coverage with your insurance agent. While map changes will affect some property owners, many residents and business owners are not affected. ![]() No additional money is needed up front, and you will get a refund for the cost difference. Residents and business owners are strongly encouraged to ask their insurance agent to convert their more expensive high-risk policy to the lower-cost Preferred Risk Policy and maintain coverage. The reduction in flood risk typically means flood insurance will be cheaper when the maps become effective. are from policyholders in the lower-risk Zone X. About 25% of NFIP flood claims in the U.S. If your property’s flood risk is changing from a high-risk area (Zone A) to a moderate- or low-risk area (Zone X), the federal requirement to carry flood insurance by lenders is removed however, the flood risk is not…it is just reduced. The NFIP grandfathering rule allows policyholders who have a policy in effect before the new maps become effective or have built-in compliance with the flood map in effect at the time of construction to keep their previous flood zone or BFE to calculate their insurance rate. Grandfathering allows property owners to “lock in” the lower risk flood zone or BFE for future rating. If the flood risk is increasing and your property will have a higher Base Flood Elevation (BFE), the NFIP offers a cost-saving flood insurance rating option know as Grandfathering. Rates will then go up no more than 18% each year until they reach a standard Zone X rate, or the rate based on the new flood map, whichever is cheaper. With this option, property owners who buy a policy within the first 12 months after a new map becomes effective are eligible for the lower-cost Preferred Risk Policy (PRP). The National Flood Insurance Program (NFIP) offers a cost-saving flood insurance rating option called the Newly Mapped Procedure. ( Spanish Version). If your home or business is newly identified as being in a high-risk flood area, most lenders must require you to carry flood insurance. Check the different scenarios below, which include your options for reducing any financial impacts. ![]() If you find that your flood risk has changed, it is important to know how that change may affect your requirement for and cost of flood insurance. Some may now be required to carry flood insurance, while others will no longer have to. When flood maps are updated, some residents and business owners may find that their property's flood risk is higher or lower than before. ![]()
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